Latte Money 101
Taxes 101
A clear introduction to income tax and the accounts that change how money is taxed.
10 lessons · about 40 minutesIn this series
Start at the top. Take it one idea at a time.
- 01What Is Income Tax?Income tax is tax charged by federal and provincial or territorial governments on taxable income under the rules that apply to you.4 min
- 02Taxable IncomeTaxable income is the amount used to apply income tax rates after the tax system includes income and allows applicable deductions.4 min
- 03Tax BracketsCanada uses marginal tax brackets, meaning different portions of taxable income are taxed at different rates.4 min
- 04Deductions and CreditsA deduction reduces an income amount used in the tax calculation. A credit reduces tax according to the rules of that credit.4 min
- 05Registered AccountsRegistered accounts are accounts recognized by tax law that change how contributions, growth or withdrawals are treated. The account is separate from the investment inside it.4 min
- 06TFSAA TFSA is a registered account where contributions are not deductible and investment income and withdrawals are generally tax-free. Contribution-room rules still apply.4 min
- 07RRSPAn RRSP is a registered retirement savings plan. Deductible contributions can reduce tax now, growth is generally sheltered while inside, and withdrawals are generally taxable later.4 min
- 08FHSAAn FHSA is a registered plan for eligible first-time home buyers. Contributions are generally deductible and qualifying home withdrawals can be tax-free.4 min
- 09RESPAn RESP is a registered education savings plan for a beneficiary. Contributions are not deductible, and government education incentives and investment earnings have their own rules.4 min
- 10Non-Registered AccountsA non-registered investment account does not provide the same tax shelter as registered accounts. Interest, dividends and capital gains can follow different tax rules.4 min